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1. Company Snapshot

1.a. Company Description

Givaudan SA, together with its subsidiaries, manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry.The company operates through in divisions, Fragrance & Beauty, and Taste & Wellbeing.The Fragrance & Beauty division offers fine fragrances, consumer products, and fragrance ingredients and active beauty products.


The Taste & Wellbeing division provides beverages, such as carbonated soft drinks, juices, bottled waters, ready-to-drink products, alcoholic beverages, hot drinks, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks comprising rice crackers and cassava chips; savory and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets.It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific.The company was founded in 1796 and is headquartered in Vernier, Switzerland.

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1.b. Last Insights on GIVN

Givaudan SA faced challenges due to rising costs and potentially pressured margins, despite a 5.1% like-for-like sales increase driven by high-growth markets and Fragrance & Beauty division. The company's recent earnings call highlighted strong sales growth, but may not have met investor expectations. With no recent announcements on share buybacks or new product launches, the focus remains on the company's ability to maintain margin stability amidst increasing costs. (Source: Givaudan SA's Full Year 2025 Earnings Call Highlights)

1.c. Company Highlights

2. Givaudan's 2025 Earnings: Strong Sales Growth and Margin Resilience

Givaudan reported sales of CHF 7.5 billion for 2025, a 5.1% increase on a like-for-like basis, with an EBITDA margin of 24.2%, slightly below the 24.5% recorded in 2024. Net income reached CHF 1,071 million, resulting in a net profit margin of 14.3%. Earnings per share (EPS) came in at CHF 116.08, exceeding analyst estimates. The company's free cash flow generation remained robust, at CHF 1,053 million, or 14.1% of sales, marking the second consecutive year above CHF 1 billion.

Publication Date: Feb -03

📋 Highlights
  • Strong Sales Growth:: Achieved CHF 7.5 billion in sales, with 5.1% like-for-like growth and 0.8% in Swiss francs.
  • EBITDA Margin Resilience:: Maintained a 24.2% EBITDA margin, reflecting resilience despite a slight decline from 24.5% in 2024.
  • Free Cash Flow Leadership:: Generated CHF 1.05 billion (14.1% of sales) in free cash flow, marking the second consecutive year above CHF 1 billion.
  • Dividend Increase:: Proposed a CHF 72 per share dividend, marking the 25th consecutive year of increases from CHF 70 in 2024.
  • Strategic Growth Momentum:: Achieved a 5-year CAGR of 6.8%, exceeding targets, with high-growth markets contributing 49% of total sales.

Segment Performance

The sales growth was broad-based across markets, segments, and customer groups, with high-growth markets expanding by 8% and mature markets by 2.4%. The Fragrance & Beauty division reported sales of CHF 3,830 million, up 7.9% on a like-for-like basis, driven by strong performance in Fine Fragrances. The Taste & Wellbeing division recorded sales of CHF 3,642 million, a 2.4% increase. As Gilles Andrier noted, "The Fragrance & Beauty division is expected to continue its good momentum, while Taste & Wellbeing will take a few months to recover due to softness in some multinational clients."

Margin Analysis

The EBITDA margin for the Fragrance & Beauty division was CHF 985 million, while the Taste & Wellbeing division reported an EBITDA of CHF 766 million. The company's gross margin was 43.5% in 2025, down from 44.1% in the previous year, impacted by raw material inflation and tariffs. However, the EBITDA margin improved to 21.7% in 2025, showing continued positive sequential margin progression.

Valuation and Outlook

With a P/E Ratio of 34.59 and an EV/EBITDA of 24.17, the market appears to have priced in a certain level of growth and profitability. Analysts estimate next year's revenue growth at 4.5%. The company's commitment to its purpose targets, including net zero greenhouse gas emissions by 2045, is also noteworthy. The Board of Directors has proposed a dividend increase to CHF 72 per share, marking the 25th consecutive dividend increase, with a Dividend Yield of 2.35%. The Net Debt / EBITDA ratio stands at 3.4, indicating a manageable debt burden.

Growth Prospects

Givaudan's 5-year CAGR of 6.8% has been significantly higher than the previous 5-year cycle, driven by its broad presence in Fine Fragrance and trends such as multi-layering and increasing dosage levels among younger generations. The company's leadership transition, with Christian Stammkoetter succeeding Gilles Andrier as CEO, is expected to ensure continuity in its growth trajectory.

3. NewsRoom

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Feb -04

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Givaudan SA (GVDBF) (Full Year 2025) Earnings Call Highlights: Strong Sales Growth Amidst ...

Jan -29

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Jan -08

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A Look At The Intrinsic Value Of Givaudan SA (VTX:GIVN)

Oct -19

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Givaudan Reports Sales in Line With Expectations, Backs Guidance

Oct -14

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Vaisala Corporation: Share Repurchase 9.9.2025

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.01%)

6. Segments

Taste & Wellbeing

Expected Growth: 6.5%

Taste & Wellbeing's 6.5% growth is driven by consumers' increasing demand for healthier and sustainable products. Givaudan's expertise in plant-based solutions, reduced sugar, and clean label ingredients positions it well to capitalize on these trends. Additionally, the company's innovation capabilities and expanding presence in emerging markets contribute to its growth momentum.

Fragrance & Beauty

Expected Growth: 5.5%

Givaudan SA's Fragrance & Beauty segment growth of 5.5% is driven by increasing demand for premium and niche fragrances, recovery in consumer beauty products, and successful new product launches. Expansion in emerging markets, particularly in Asia-Pacific, and a strong order book also contribute to this growth.

7. Detailed Products

Flavour Compounds

Givaudan's flavour compounds are complex mixtures of natural and synthetic ingredients that create specific taste profiles for food and beverage applications.

Fragrance Oils

Givaudan's fragrance oils are concentrated mixtures of essential oils, aroma compounds, and other ingredients that evoke specific scents for perfumes, personal care products, and home care applications.

Essential Oils

Givaudan's essential oils are concentrated plant extracts obtained through various methods such as distillation or expression, used in flavour, fragrance, and aromatherapy applications.

Aroma Chemicals

Givaudan's aroma chemicals are individual molecules used to create specific scents or flavours, available in both natural and synthetic forms.

Taste Modulation

Givaudan's taste modulation solutions are designed to enhance or modify the taste of food and beverages, including sweetening, savoury, and umami taste solutions.

Food Service Solutions

Givaudan's food service solutions are designed to help foodservice providers create menu items with improved taste, texture, and nutritional profile.

8. Givaudan SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Givaudan SA operates in the flavor and fragrance industry, where substitutes are available but not identical. Customers can switch to other flavor and fragrance providers, but this would require significant reformulation and retesting, which can be costly and time-consuming. The threat of substitutes is medium as there are alternative products available, but they are not perfect substitutes.

Bargaining Power Of Customers

Givaudan SA's customers are primarily large food, beverage, and consumer goods companies. These customers have a significant volume of purchases, but Givaudan SA has a strong market position and a wide range of products, which reduces the bargaining power of customers. Additionally, the switching costs for customers are high due to the complexity of reformulation and retesting.

Bargaining Power Of Suppliers

Givaudan SA's suppliers are primarily providers of raw materials such as essential oils, aroma compounds, and other chemical inputs. While some of these suppliers may have significant market power, Givaudan SA has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, Givaudan SA has a strong procurement function and a history of managing supplier relationships effectively.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the flavor and fragrance industry. New entrants would need to invest significant amounts in research and development, manufacturing capacity, and marketing to compete effectively with established players like Givaudan SA. Additionally, the industry is highly regulated, which creates additional barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the flavor and fragrance industry is high due to the presence of several large players, including Givaudan SA, International Flavors & Fragrances (IFF), and Symrise. These companies compete on factors such as product quality, innovation, and price, which drives rivalry. Additionally, the industry is mature, and growth is relatively slow, which intensifies competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.93%
Debt Cost 4.28%
Equity Weight 49.07%
Equity Cost 7.13%
WACC 5.67%
Leverage 103.78%

11. Quality Control: Givaudan SA passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quality: 8.8

Yield: 2.5

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Givaudan

A-Score: 4.4/10

Value: 1.1

Growth: 5.0

Quality: 6.0

Yield: 3.8

Momentum: 2.0

Volatility: 8.7

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A-Score: 4.4/10

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Quality: 6.0

Yield: 2.5

Momentum: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2999.0$

Current Price

2999$

Potential

-0.00%

Expected Cash-Flows